Cost Segregation Studies

First, we'll determine if your property is a good fit for a cost segregation study. We prepare an initial detailed no-cost analysis to determine the benefits of doing a study.

During that analysis, we make sure you meet all the minimum qualifications for a cost segrgation study:

• You have taxable income
• You have purchased, constructed, or renovated (including tenant improvements) a commercial real estate property in the last 20 years
• Your purchase or construction costs are $250,0000 or greater

Once it is determined a study is warranted, we will begin requesting all appropriate documentation.

Common items you'll be asked to provide are:

• Construction drawings
• Purchase agreements
• Appraisals
• Building plans

We will visit your property to determine the accuracy of the building plans and to identify the building components that qualify for a shorter recovery period. This is documented through measurements, pictures and field notes.

All information is entered into a specialized engineering software that integrates the plans of the building and calculates the measurements and counts of all building components. We download the data into our powerful proprietary software that assigns pricing and recovery periods to each component.

All studies include a thorough review and documentation of the tax law that allows taxpayers to assign a building component to a shorter recover period.

If the study is being done on a property that was constructed or purchased in a prior year, we will provide the approrpriate information to file IRS Form 3115 (Change of Accounting Method).